Brooklyn Brownstone
NYC Newswire
Brooklyn Brownstone
A recently introduced bill, Bill 1107, led by Council Members Farah Louis (Prime Sponsor), Adrienne Adams, Mercedes Narcisse, and Kevin Riley, proposes critical amendments to New York City’s stringent short-term rental laws. This legislation seeks to address the limitations imposed by Local Law 18 (LL18), which had effectively eliminated short-term rental opportunities for many homeowners in one- and two-family homes across the city.
Addressing the Impact of Local Law 18
Implemented in September 2023, Local Law 18 severely restricted short-term rental activities by imposing stringent requirements on homeowners. Under this law, hosts were mandated to grant renters access to all parts of their homes, including private spaces such as bedrooms and offices. These conditions raised significant safety and privacy concerns, discouraging many from participating in the short-term rental market.
The proposed amendments in Bill 1107 aim to correct these issues by restoring the rights of homeowners to rent out their properties while maintaining control over private areas. This legislative move seeks to revive the short-term rental market, which has been a vital source of income for many working and middle-income homeowners, especially in Brooklyn, Queens, Staten Island, and the Bronx.
A,Row,Of,Old,Brick,Homes,Along,The,Sidewalk,In
NYC Newswire
A Row of Old Brick Homes along the Sidewalk in Astoria Queens of New York City
A,Row,Of,Old,Brick,Homes,Along,The,Sidewalk,In
NYC Newswire
A Row of Old Brick Homes along the Sidewalk in Astoria Queens of New York City
Key Provisions of Bill 1107
The new amendment introduces several significant changes to the city's building and administrative codes, providing greater flexibility for one- and two-family homeowners:
-
Restored Short-Term Rental Permissions:
- The bill allows homeowners of one- and two-family dwellings to legally offer short-term rentals for stays of 30 days or less. This measure reverses the restrictive limitations of LL18, reopening a critical income source for property owners.
-
Control Over Private Spaces:
- The legislation explicitly states that homeowners are not required to provide access to private areas such as bedrooms, offices, or personal spaces within the dwelling. This provision is designed to enhance safety and address privacy concerns, making short-term rentals a more viable and appealing option for property owners.
-
Flexibility for Homeowners:
- Homeowners are permitted to offer short-term rentals even if they are not physically present on the property during the rental period. This change provides flexibility for those who travel frequently or wish to rent their properties seasonally.
-
Increased Occupancy Limit:
- The amendment allows up to four adult boarders and their children to stay in one- or two-family dwellings as short-term renters. This increase aims to boost the rental income potential for homeowners while accommodating larger visitor groups.
A Path to Revitalizing NYC's Short-Term Rental Market
The introduction of Bill 1107 marks a significant step towards revitalizing New York City’s short-term rental landscape. The amendments are designed to strike a balance between supporting the city’s tourism economy and protecting homeowners' rights. If passed, this legislation could provide a much-needed boost to the rental market, enabling property owners to benefit from short-term rental income without sacrificing their privacy or safety.
The bill is especially timely given the recent data from a report by HR&A Advisors, which highlights the economic impact of LL18. The report reveals that the outer boroughs could experience $1.6 billion less in projected visitor spending, resulting in over 15,700 fewer jobs and $573 million less in worker earnings. Despite the law’s intent to increase housing availability, vacancy rates have remained unchanged, and rents continue to rise even as Airbnb listings have plummeted by approximately 92%. This indicates that LL18 has failed to deliver on its promises of enhancing housing affordability while significantly hampering economic activity across New York City.
Community Response
The proposed amendments have garnered strong support from local homeowner's advocacy group, RHOAR (Restore Homeowner Autonomy And Rights. In their statement, RHOAR highlighted the detrimental effects of the current law on NYC's homeowners:
“Intro 1107 regarding proposed amendments to New York’s short-term rental laws would be a crucial step in saving NYC’s homeowners. The current law, while needed to stop bad actors, went too far and has devastated working and middle-income homeowners, especially in Brooklyn, Queens, Staten Island, and the Bronx, essentially rendering all of us unable to rent out our own homes short-term when we’re simply trying to make ends meet. Although there is still a long way to go towards undoing the financial harm that has been caused, these amendments would allow the city’s homeowners to regain some of the housing security and autonomy that we have lost – which is especially critical at this moment when the costs of affording and maintaining a home have never been higher."
"We thank City Council Speaker Adams, Council Members Louis, Narcisse, Riley, and the entire Council for their commitment to addressing this critical issue that will allow more of NYC’s working and middle-income homeowners to be able to afford and stay in our homes.”
The Broader Economic Impact
The HR&A report also underscores that LL18 has inadvertently boosted the hotel industry, which had lobbied for the law's implementation. Since LL18 took effect, hotel prices have surged, with the Average Daily Rate (ADR) increasing by 6% from May 2023 to May 2024, reaching a record-high ADR of $524. The restriction on short-term rentals has driven visitors to midtown hotels, reducing accommodation options outside of Manhattan, and making stays in the city more expensive and less accessible for budget-conscious travelers.
With only 20% of the city’s hotel rooms located in the outer boroughs, the law has disproportionately funneled tourists into Manhattan, thereby concentrating tourism revenue in the area and depriving local businesses in other boroughs of potential income.
Moving Forward
As Bill 1107 moves through the City Council, it offers a chance to reverse the economic and social harms caused by LL18. The proposed amendments could help reintegrate short-term rentals into the city’s housing and tourism economy, supporting homeowners and reviving the broader economic landscape across all five boroughs.
By restoring the ability of homeowners to participate in the short-term rental market, the legislation aims to provide a more balanced approach that can help stabilize the housing sector, alleviate financial pressures on property owners, and bring back diverse, affordable accommodation options for visitors.
